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Hyundai Motor to shut South Korean parts plants in pivot toward EVs

Published 12/21/2023, 03:49 AM
Updated 12/21/2023, 03:50 AM
© Reuters. A man walks past the logo of Hyundai Motor during the 2019 Seoul Motor Show in Goyang, South Korea, March 28, 2019. REUTERS/Kim Hong-Ji/File Photo
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SEOUL (Reuters) - Hyundai Motor (OTC:HYMTF) said on Thursday it plans to stop operations at two parts forging plants in South Korea next year as the automaker accelerates a shift away from petrol-powered cars.

The plants in Ulsan, South Korea, which have been in operation since 1991 making engine parts, are expected to be closed in January and October, respectively.

Hyundai Motor, the world's No.3 automaker by sales with its affiliate Kia Corp, is gradually reducing the proportion of internal combustion engines in its finished cars in favour of electrified vehicles.

© Reuters. A man walks past the logo of Hyundai Motor during the 2019 Seoul Motor Show in Goyang, South Korea, March 28, 2019. REUTERS/Kim Hong-Ji/File Photo

In November, it broke ground on a 2 trillion won plant dedicated to making electric vehicles (EVs) in South Korea.

A Hyundai spokesperson said it is reviewing outsourcing some of the engine components manufacturing done at the facilities for the time being.

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